So I owe $57K to the IRS. So I have been paying $1K / month. So I have had trouble meeting all of my responsibilities. So it has been getting me down. So I met with a tax export. So he looked at the numbers and confirmed that I can not pay it. So apparently if you can not pay it you do not have to pay it. So I have to submit what is known as an Offer in Compromise.
Could there be a light at the end of the tunnel? Maybe so. We will see.
19 comments:
What will you offer as a compromise? I would offer $57.00 and see what they say?
Gosh you must have incredibly complex tax laws to end up owing that much? Don't they tax everyone at source over there?
You bet they suck. If it was here, they then charge you interest on what you owe and it gets added to for every 6 months it remains unpaid. It boils down to you end up owing so much, you can never repay it and they take everything you own. We don't get a compromise offer option. I hope it works out for you.
They are shiteheads.
Maybe you all need new I.D.'s and run away to some far off Pacific nation where they can never find you? Huh?
If all goes well I will end up paying $8-12K which I will get be re-financing my house. The tax laws are very complex, and I first got in this mess with my 1999 tax return which was so complex that it took a year to prepare (and $10K) by 2 different professional tax preparers. The prefessionals could not even agree with what I should file.
I would have happily paid when I had the money had I any idea what the figure was. In retrospect I should have taken a wild guess and paid a big pile, and then I would have been far better off.
That last idea is actually not a bad idea. I would only need to be out of the country for about 5 years until the statue of limitations has expired. If I only had a good place to go to. Any ideas?
oh I can fully understand, my dad always complains when its time to file for taxes....lame but what to do?!
I like Aggie's $57.00 idea. I really hope that they'll go for the lower amount. That would sure be a long burden lifted.
How about 5 yrs in ... .......
I cannot say more in case the IRS guess where you are. LOL!
Eesh. That's a lot of $$. Sounds like you had a complicated year in 99. Hope you figure it all out so that you don't have to pay the full amount.
What genius thinks you owe $57K if they agree that you can't pay $57K? You obviously don't owe $57K then!
Dopes!!!
I am convinced that they got their zeros in the wrong place and like Aggie said, you really only owe $57.00.
That sounds like a fair tax bill to me. Pay the $57.00 immediately and write a "I'm sorry" note and ... run ... head for them thar hills.
btw, do you have hills in Texas?
I don't even want to know what you did to get a $57K tax bill.
Good luck!
This post did nothing more than terrify me and cause my anxiety to shoot through the roof.
Never the less, thanks for stopping by! 8-)
Callie, I earned a fortune in the stock market in 1999. Unfortunatly, I lost a fortune in the stock market in 2000. The thing is the tax system is rigged. You can not write off your gains with your subseqent loses. You can only write off $3K a year in loses, but it does roll forward, so the good news is that it looks like I have a $3K write off for the rest of my life.
That is funny. That is exactly what it feels like, too.
I like Aggie's idea....
WoW! That's gotta suck! Good luck... If it gets too bad I'd go with the leave the country option. 5 yrs isnt long...
I'm going to be paying $260 a month for about 20 years to pay off my debt. Then I plan to die. Unless I can still, uh never mind kids (and Ruth Ann!) read this...:O)
You should try to figure out how to come up with the cash to do an offer and compromise too, Perry. Why pay the whole thing if you do not have to?
I have an idea: you can fake your death - washed out to sea on a tsunami or the weekly hurricanes in your parts. Then you re-emerge with new identity such as blond hair, 40 pounds slimmer, pierced ears, lower lip, nipples, and some really thin silver neclaces. You can even be Ruth Ann's "second" husband - now that's a cool idea - get married again but to the same person, and since you are not you anymore, you owe no taxes! There was a real case of this that finally cracked: a guy washed ashore in England who was apparantly traumatized and spoke nothing, but played superb piano. Turned out to be a gimmick to get out of legal problems in Europe, but he almost pulled it off. They called him the "piano man."
Chris - I make too much $ and the IRS refused the OIC. They did agree to the payment arrangement instead of garnishing my wages...:O)
In the end, I accept that I owed the taxes, I didn't pay them and like the tax laws or not, they are still laws...and I need to be a law-abiding citizen....for once.
:O)
Saw this in google news this morning--at least you can write off a little extra now:
IRS to refund old phone tax
"WASHINGTON - The taxman is hanging up an old phone charge.
After businesses finally won the war against a 19th-century tax on long-distance calls, consumers will be able to claim a standard $30 to $60 refund next year, the IRS says.
Telephone customers had been paying the 3% federal excise tax on local and long-distance service, a levy dating back to the Spanish-American War, when phones were a luxury and the feds needed money.
The government stopped collecting the tax on long-distance calls this month after businesses repeatedly fought it in court and won.
The Treasury Department has said it expects to return $13 billion to consumers, including businesses and other organizations. The Associated Press
Originally published on September 3, 2006"
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